A look at highlights from the day's business news:
U.S. stocks tumbled Tuesday, with all three major indexes down nearly 2%, as investors cast a worried eye at economic developments in Europe and China.
The Dow Jones industrial average finished 178 points lower, or 1.6%, with Alcoa and Travelers Companies leading the blue chip index's decline. Earlier in the session, the Dow fell more than 200 points.
The S&P 500 fell 19 points, or 1.6%. The tech-heavy Nasdaq lost 44 points, or 1.8%. The Dow and the S&P posted the biggest one-day losses since Aug. 11 and Aug. 19, respectively. The Nasdaq's drop was the largest since Oct. 19.
The day's sell-off also puts all three indexes on track to post a declinefor the month of November, erasing the gains logged after the Republican victory in the midterm elections and the Federal Reserve's announcement to pump $600 billion in to the economy.
Traders on Wall Street have been holding back on buying recently, as they await more clarity on the economic outlook for the United States, Europe and China.
After a two-week selloff, Treasuries started to make a comeback Tuesday as investors take in the latest inflation data.
Early Tuesday, the government reported the Producer Price Index, a measure of prices at the wholesale level, rose 0.4% in October. That's the same level it increased in both August and September, and lower than economist's expectations for 0.8% growth.
Next up is the Consumer Price Index, which is due early Wednesday. The CPI - considered the broadest measure of inflation - is also expected to show dangerously low levels of inflation.
Bond traders closely watch inflation data, because expectations for how quickly prices rise over the long term could compete with the low yields on government bonds.
"Bonds are not like stocks," said Adrian Cronje, chief investment officer for Balentine. "If inflation does pick up and interest rates shoot up, you could find yourself taking a quite meaningful capital loss. So long-term holders of bonds that are not indexed to inflation are potentially quite vulnerable."
– CNNMoney.com reporters Hibah Yousuf and Annalyn Censky contributed to this report.